Horizon Global Corporation (NYSE: HZN) and Autoliv (NYSE:ALV) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Institutional & Insider Ownership

94.0% of Horizon Global Corporation shares are held by institutional investors. Comparatively, 34.8% of Autoliv shares are held by institutional investors. 1.3% of Horizon Global Corporation shares are held by company insiders. Comparatively, 0.3% of Autoliv shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Autoliv pays an annual dividend of $2.40 per share and has a dividend yield of 2.1%. Horizon Global Corporation does not pay a dividend. Autoliv pays out 38.0% of its earnings in the form of a dividend. Horizon Global Corporation has raised its dividend for 7 consecutive years.

Earnings & Valuation

This table compares Horizon Global Corporation and Autoliv’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Horizon Global Corporation $792.20 million 0.56 $58.76 million ($0.67) -26.63
Autoliv $10.22 billion 0.96 $1.28 billion $6.32 17.92

Autoliv has higher revenue and earnings than Horizon Global Corporation. Horizon Global Corporation is trading at a lower price-to-earnings ratio than Autoliv, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Horizon Global Corporation has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Profitability

This table compares Horizon Global Corporation and Autoliv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Horizon Global Corporation -1.45% 18.86% 2.76%
Autoliv 5.44% 13.96% 6.75%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Horizon Global Corporation and Autoliv, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Horizon Global Corporation 1 2 4 0 2.43
Autoliv 3 8 6 0 2.18

Horizon Global Corporation presently has a consensus target price of $20.17, indicating a potential upside of 13.04%. Autoliv has a consensus target price of $104.22, indicating a potential downside of 7.97%. Given Horizon Global Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Horizon Global Corporation is more favorable than Autoliv.

Summary

Horizon Global Corporation beats Autoliv on 9 of the 17 factors compared between the two stocks.

About Horizon Global Corporation

Horizon Global Corporation is a designer, manufacturer and distributor of a range of custom-engineered towing, trailering, cargo management and other products serving the automotive aftermarket, retail and original equipment (OE) channels. The Company operates through three segments: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa. Its towing product category includes devices and accessories installed on a tow-vehicle for the purpose of attaching a trailer and camper, among others, such as hitches and other towing accessories. Its trailering product category includes control devices and components of the trailer itself, such as brake controls and brake replacement parts. Its cargo management product category includes a range of products used to facilitate the transportation of various forms of cargo, to secure that cargo or to organize items. Its other product category includes a range of items, such as tubular push bars, side steps, and commercial brooms and brushes.

About Autoliv

Autoliv, Inc. is a supplier of automotive safety systems with a range of product offerings, including passive safety systems and active safety systems. The Company operates through two segments: Passive Safety and Electronics. The Passive safety products include modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, whiplash protection systems and child seats, and components for such systems, as well as passive safety electronic products, such as restraint electronics and crash sensors. The Active safety products include camera-based vision systems, night driving assist, automotive radars, brake controls, positioning systems, electronic control units, and other active safety systems. As of December 31, 2016, including joint venture operations, the Company had approximately 78 production facilities in 25 countries, consisting of both component factories and assembly factories.

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